According to the announcement on New York State Attorney General Eliot Spitzer’s Web site, Calugar pled guilty in Manhattan State Supreme Court to charges that he entered into a secret agreement in August 2001 that defrauded the Franklin Small-Mid Cap Growth Fund (See Massachusetts Hits Franklin with Fraud Charges).
Calugar faces up to four years in prison, the maximum sentence allowable under the law, according to the announcement. He has already agreed to pay $153 million in restitution to the Securities and Exchange Commission (See Calugar Agrees to Record Settlement to Market-Timing Charge).
Calugar was released on his own recognizance and faces sentencing on March 23.
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